I am all for a bunch of people celebrating a festival. Don’t get me wrong. However, amidst these celebrations (and some of these are at massive scale), is the main point lost?
I have been reading a lot these days, especially after sign-up for the 40 Book a Year challenge on GoodReads.
I should be done by the month of September and am looking to hitting 50 books this year. Thats almost a book a week, and I could not be happier.
This infographic also speaks volumes, I thought the Swedes are more voracious readers, but, looks like times are changing.
The recent Net Neutrality debate has me scared.
The very notion that the internet (which has always been considered as a free medium) needs to be regulated and controlled by a select few gives me the creeps.
India has been always pro for regulation, and this has resulted in fewer scams, but take the Telecom bandwidth licensing issues for e.g. The whole reason why telecom companies are crying out murder against OTT (read the internet) services is this.
On 27th March 2015, TRAI has released a Consultation Paper proposing a regulatory framework for Over The Top (OTT) services.
Everybody who is on the internet has probably heard of this term. Trolls or being trolled is fairly common. In fact there are sites such as 4chan where the sole purpose of the community is to troll on different activities.
Reddit is also one such community, where a lot of users are actively trolling and are being trolled. Being a long time lurker on Reddit, I used to read through multiple posts where fellow redditors would make hilarious comments (often to diffuse a situation). Funny, but at whose expense?
One of the great things that attracts investor capital is the ability of third world countries to show double digit growth. This story of almost all developing nations mean a scope for investments for other organizations present world-wide. Various countries have different economic policies, such as the open policy by China to attract huge FDI, and the partially open economy by India which invites FDI but limits the amount which can be withdrawn.
Why is this story selling for the past 5 or so years?
The answer is simple. Third World nations represent an inefficient market. A place where the buyers and sellers do not have access to complete information about the transaction. Since there is hardly any organized sector in such markets, there is virtually no analysis done on the varied types of transactions. This absence of information creates an inefficiency in the market … the simple act of saving each and every market transaction and making it available to the public creates the huge value of wealth maximization for both the buyer and the seller.
Wealth Creation by Information Symmetry
Imagine a scenario where a seller wants to sell a book for five dollars, it’s slightly used but the book is not easily available in the market. But the seller does not know that … the seller implicitly assigns a value of 5 dollars and expects the same amount in return. Now if a buyer who values the book a lot more than that were to find about the book, then he will finish the transaction at five dollars (even if he were ready to pay more). So what just happened back there? A book was exchanged for a lesser amount than what it would have fetched. Had the seller known that it could have fetched more (if he had access to that information), then the seller would have generated more wealth by selling at a higher price.
Take a look at this scene from Pretty Woman, had Julia Roberts known that Richard Gere was willing to pay 4000 USD for the week, then she would not have settled on 3000 USD in the first place! This is the power of Information Symmetry!
So in developing countries such as Brazil, Tanzania and India, the one sure shot formula for wealth creation is by creating an information market and making it available to the general public. We can also refer to information markets as Free online Classifieds, a site where people can post information about their buying and selling requirements.
We wanted to sell our six year old car and used a similar service to get the highest price for a used car. Access to such an information market not only ensured that we got the highest bidder, but also reduced the transaction hassles for us.
Any information market (such as an online classified) brings the buyer and the seller on the same platform and ensures that the seller gets a higher price and the buyer gets a chance to purchase the same price at a lower cost.
An information market is hugely successful wherever the market is fragmented and does not have any organized player.
An information market also increases the reach of local organizations.